ESWATINI SUGAR INDUSTRY DEFIES CHALLENGES, REVENUE HITS E8 BILLION

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BY MFANUFIKILE KHATHWANE

MBABANE– Eswatini sugar industry recorded E8 billion in revenue during the 2025/26 season despite battling lower global sugar prices, heavy rains and increasing pressure in regional markets.

The latest results released on July 15,2026 by the industry show that revenue increased by 3.9 per cent from E7.7 billion in the previous season to E8 billion, while sugar sales rose by 9.4 per cent to 647 574 tonnes, compared to 591 986 tonnes in 2024/25. Sugar production remained almost unchanged at 639 998 tonnes, slightly lower than the 640 738 tonnes produced the previous season.

Although the industry posted higher revenue, the amount distributed to growers and millers fell by 8 per cent. A total of E6.7 billion was distributed during the season, down from E7.3 billion the previous year. Growers received 68.1 per cent of the distribution, while millers received 31.9 per cent.

The industry attributed the difficult season to a combination of local and international factors. The average world sugar price dropped to 14.5 US cents per pound, while about 200 000 tonnes of imported sugar entered the SACU market, reducing demand for Eswatini sugar and putting pressure on industry earnings.

Production was also affected by heavy rains experienced between December 2025 and March 2026, leaving about 240 000 tonnes of sugarcane unharvested, equivalent to approximately 20 000 tonnes of sugar.

Despite these setbacks, the sugar industry remains one of Eswatini’s biggest economic pillars. It supports sugarcane production on 61 000 hectares, employs about 16 000 permanent and seasonal workers, contributes 4.1 per cent to the country’s Gross Domestic Product (GDP) and accounts for 7 per cent of national export earnings.

Eswatini is also ranked as Africa’s third-largest sugar producer, the world’s 10th-largest net sugar exporter, and one of the world’s most cost-efficient sugar producers.

Looking ahead to the 2026/27 season, the industry expects continued pressure from low global sugar prices, the predicted El Niño weather pattern, regional market uncertainty and rising fuel and fertiliser costs. However, it remains optimistic that the sector will achieve a stronger performance in 2027.

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(Courtesy Pic)